With the overall revenues falling by 64%, the company has declared $423 million in losses for Q4 2014
It has been pretty obvious since quite some time now that BlackBerry has taken its way down the drain and now with a huge bump in the financial performance of the company, it will certainly not be wrong to conclude that the Canadian mobile company has taken a hard fall. Its revenues have decreased by 64% and now stand at merely $976 million.
There was a time when the name BlackBerry was heavily associated with success and luxury at the same time and now it has shown $423 million in losses for Q4 2014 which also means that there will be a drop in the share price by 80 cents. We can conclude that the lack of significant BlackBerry 10 adoption from new users has been a primary factor that led to the downfall of the company. Well, it was quite evident that the company would need a restructuring plan and now in order to stay afloat, the management is being revised and the company will not be taking a low cost approach towards policies. a cost cut might also mean job slashing through the organisation because laying off employees is going to save a lot of costs. The plan is to focus more on the corporate and government sector as the major customers and there will some low end offerings too to cater for the emerging BB markets.
The CEO John Chen has predicted that with all the restructuring and the effective planning, the company will once again be profitable by 2016 and hoprefully the positive cash flows will show up within the next four quarters. The sticker sales and sponsored posts will now be made part of the BBM platform which has ahuge customer base and this will be a good way of attracting money from them. Secondly, the company is also rolling out its Q20 and the Z3 and we can only cross our fingers to see how the new plans turn out to be for the company.